H.R.2384 - Financial Technology Protection Act of 2025 (119th Congress)
Summary
H.R.2384, the Financial Technology Protection Act of 2025, aims to combat terrorism and illicit financing by establishing an Independent Financial Technology Working Group. This group will research the use of digital assets and emerging technologies for illicit purposes and develop legislative and regulatory proposals to counter these activities. The bill also mandates a report and strategy to prevent rogue and foreign actors from evading sanctions using digital assets.
Expected Effects
The Act will likely lead to increased scrutiny and regulation of digital assets and financial technology companies. It will also foster collaboration between government agencies, financial institutions, and technology companies to address illicit financing risks. The creation of the working group and the mandated reports will provide insights into the evolving threat landscape and inform policy decisions.
Potential Benefits
- Enhanced national security by hindering terrorist financing.
- Improved anti-money laundering efforts, making it harder for criminals to use digital assets.
- Fostered innovation in blockchain intelligence and related technologies.
- Increased collaboration between public and private sectors in combating financial crime.
- Greater transparency and accountability in the digital asset space.
Potential Disadvantages
- Potential for increased regulatory burden on financial technology companies.
- Possible restrictions on individual privacy due to enhanced monitoring of digital asset transactions.
- Risk of stifling innovation if regulations are overly restrictive.
- Cost of implementing the working group and related initiatives.
- Potential for unintended consequences due to the complex nature of digital assets and emerging technologies.
Constitutional Alignment
The bill appears to align with the Constitution's broad goals of providing for the common defense and promoting the general welfare, as stated in the Preamble. Congress has the power to regulate commerce (Article I, Section 8) and to enact laws necessary and proper for carrying out its enumerated powers. The establishment of a working group and the mandate for reports fall within these powers. The First Amendment implications regarding freedom of speech and privacy need to be carefully considered during implementation to ensure regulations are narrowly tailored and do not infringe on protected rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).